Keathley Canyon is an undersea canyon in the United States Exclusive Economic Zone in the Gulf of Mexico . It is named for the hydrographic survey ship USNS Sergeant George D. Keathley (T-AGS-35) .
86-693: The Canyon is rich in oil fields . The major oilfields at the Keathley Canyon are Tiber , Kaskida , Lucius, and Buckskin. Many oil companies, including Chevron Corporation , BP , Anadarko Petroleum , ExxonMobil , Repsol , Shell , Devon Energy , BHP , Eni , Navitas Petroleum and Total have leased the rights to drill for oil in this area. In June, 2011, ExxonMobil announced two major oil and gas discoveries in Keathley Canyon blocks 918, 919, and 964 (Hadrian field) 250 miles (400 km) southwest of New Orleans, with combined estimated reserves of 700 million barrels (110 × 10 ^ m). The find
172-445: A cap rock) is a fundamental part of the trap that prevents hydrocarbons from further upward migration. A capillary seal is formed when the capillary pressure across the pore throats is greater than or equal to the buoyancy pressure of the migrating hydrocarbons. They do not allow fluids to migrate across them until their integrity is disrupted, causing them to leak. There are two types of capillary seal whose classifications are based on
258-563: A common main borehole . In 1971, the company acquired Milchem , a provider of drilling fluids , for approximately $ 20 million in stock. In 1931, Max B. Miller devised a drilling mud using a white clay as a weighting material. To market the new mud, he formed The Milwhite Company in Texas. In the mid-1930s, the company mined barites in conjunction with the Magnet Cove Barium Corporation (later called Magcobar). After
344-406: A consequence, oil and natural gas are often found together. In common usage, deposits rich in oil are known as oil fields, and deposits rich in natural gas are called natural gas fields. In general, organic sediments buried in depths of 1,000 m to 6,000 m (at temperatures of 60 ° C to 150 °C) generate oil, while sediments buried deeper and at higher temperatures generate natural gas. The deeper
430-442: A direct reading spectrometer and x-ray diffractometer. In 1959, Hughes introduced self-lubricating, sealed bearing rock bits. After collecting data from thousands of bit runs, Hughes introduced the first comprehensive guides to efficient drilling practices in 1960; in 1964, X-Line rock bits were introduced, combining new cutting structure designs and hydraulic jets. Hughes Tool Company acquired Brown Oil Tools in 1978. Brown Oil Tools
516-416: A division of Aker ASA . In February 2006, Baker Hughes acquired Nova Technology Corporation, a supplier of permanent monitoring, chemical injection systems, and multiline services for deepwater and subsea oil and gas well applications, for $ 70 million in cash and assumed debt. In October 2010, Baker Hughes acquired JOA Oil & Gas BV. JOA developed JewelSuite, a reservoir modelling software. In 1990,
602-430: A dozen installations. On June 18, 2012, the strike was called off after the parties agreed to a new collective agreement. In January 2019, Baker Hughes pledged to reduce carbon dioxide equivalent emissions by 50% by 2030, and 100% by 2050 from a 2012 baseline. In June 2021, Baker Hughes signed a memorandum of understanding with Borg CO 2 to develop carbon capture, liquefaction, and transportation technologies on
688-400: A drilling fluid additive to free stuck pipe that is still sold today. Reuben C. Baker (1872–1957) was a farm boy who never advanced in school beyond the third grade. He followed his brother Aaron Alphonso Baker into the oil business. In 1895, he got a job in a California oilfield driving a horse team to haul oil for drillers. One year later, he became a drilling contractor. In July 1907, he
774-556: A drilling rig in Goose Creek, Texas . Each time, Hughes asked the drilling crew to leave the rig floor, pulled the bit from a locked wooden box, and then his associates ran the bit into the hole. The drill pipe twisted off on the first test, but the second was extremely successful. Following these successful drill bit tests, the partners founded the Sharp-Hughes Tool Company in 1909. The first shop to manufacture
860-407: A few, very large offshore drilling rigs, due to the cost and logistical difficulties in working over water. Rising gas prices in the early 21st century encouraged drillers to revisit fields that previously were not considered economically viable. For example, in 2008 McMoran Exploration passed a drilling depth of over 32,000 feet (9754 m) (the deepest test well in the history of gas production) at
946-457: A gravity higher than 45 API. Gas cycling is the process where dry gas is injected and produced along with condensed liquid. Baker Hughes Baker Hughes Company is a global energy technology company co-headquartered in Houston , Texas and London, UK. As one of the world's largest oil field services , industrial and energy technology companies, it provides products and services to
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#17327828936981032-477: A hiatus during World War II, the company resumed grinding operations using barite from a mine in Missouri and conducted mud sales through independent distributors. After 1956, Milwhite Mud Sales Company built its own sales network. In 1963, the company acquired Aquaness, and in 1964 the combination became Milchem . In 1972, the company acquired Exploration Logging Company (EXLOG), a leader in mud logging . EXLOG
1118-471: A result of changes in the structure of the subsurface from processes such as folding and faulting , leading to the formation of domes , anticlines , and folds. Examples of this kind of trap are an anticline trap, a fault trap, and a salt dome trap. They are more easily delineated and more prospective than their stratigraphic counterparts, with the majority of the world's petroleum reserves being found in structural traps. Stratigraphic traps are formed as
1204-435: A result of lateral and vertical variations in the thickness, texture, porosity, or lithology of the reservoir rock. Examples of this type of trap are an unconformity trap, a lens trap and a reef trap. Hydrodynamic traps are a far less common type of trap. They are caused by the differences in water pressure, that are associated with water flow, creating a tilt of the hydrocarbon-water contact. The seal (also referred to as
1290-559: A result of the 1980s oil glut , in 1987, Baker International merged with Hughes Tool Company in a $ 728 million stock transaction to form Baker Hughes Incorporated. The merger required Baker to enter into a consent decree to divest Reed Tool Company, Reed's facility in Singapore, and its Baker Lift division. Hughes attempted to terminate the agreement after Baker entered into the consent decree; however, Baker sued Hughes for $ 1 billion and Hughes shareholders voted overwhelmingly to complete
1376-414: A seismic data processing company; Seismic Resources, a provider of nonexclusive seismic surveys; and ParaMagnetic Logging, a well-logging research company. In the fourth quarter of 1997, the company acquired Heartland Kingfisher, a Canadian well-logging company. On August 10, 1998, Baker Hughes acquired Western Atlas for $ 5.5 billion in stock plus the assumption of $ 700 million in debt. The acquisition
1462-502: A significantly higher displacement pressure such that the pressure required for tension fracturing is actually lower than the pressure required for fluid displacement—for example, in evaporites or very tight shales. The rock will fracture when the pore pressure is greater than both its minimum stress and its tensile strength then reseal when the pressure reduces and the fractures close. Unconventional (oil & gas) reservoirs are accumulations where oil and gas phases are tightly bound to
1548-527: A waste-to-energy plant in Sarpsborg . In 1989, the company acquired Bird Machine Company for $ 47.5 million, Vetco Services for $ 37 million, and EDECO Petroleum Services for $ 12.1 million. In 1990, the company acquired Eastman Christensen, a leader in directional drilling systems and diamond bit technology, for $ 600 million. It also acquired the instrumentation units of Tracor Holdings for $ 93.7 million in cash and Chemlink for $ 136 million in cash. In 1990,
1634-428: Is an economic benefit worthy of commercial attention. Oil fields may extend up to several hundred kilometers across the surface, meaning that extraction efforts can be large and spread out across the area. In addition to extraction equipment, there may be exploratory wells probing the edges to find more reservoir area, pipelines to transport the oil elsewhere, and support facilities. Oil fields can occur anywhere that
1720-402: Is analogous to saying that the oil which can be extracted forms within the source rock itself, as opposed to accumulating under a cap rock. Oil sands are an example of an unconventional oil reservoir. Unconventional reservoirs and their associated unconventional oil encompass a broad spectrum of petroleum extraction and refinement techniques, as well as many different sources. Since the oil
1806-403: Is being pursued at a higher rate because of the scarcity of conventional reservoirs around the world. After the discovery of a reservoir, a petroleum engineer will seek to build a better picture of the accumulation. In a simple textbook example of a uniform reservoir, the first stage is to conduct a seismic survey to determine the possible size of the trap. Appraisal wells can be used to determine
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#17327828936981892-452: Is best to manage the gas cap effectively, that is, placing the oil wells such that the gas cap will not reach them until the maximum amount of oil is produced. Also a high production rate may cause the gas to migrate downward into the production interval. In this case, over time the reservoir pressure depletion is not as steep as in the case of solution-based gas drive. In this case, the oil rate will not decline as steeply but will depend also on
1978-426: Is called the stock tank oil initially in place . As a result of studying factors such as the permeability of the rock (how easily fluids can flow through the rock) and possible drive mechanisms, it is possible to estimate the recovery factor, or what proportion of oil in place can be reasonably expected to be produced. The recovery factor is commonly 30–35%, giving a value for the recoverable resources. The difficulty
2064-490: Is contained within the source rock, unconventional reservoirs require that the extracting entity function as a mining operation rather than drilling and pumping like a conventional reservoir. This has tradeoffs, with higher post-production costs associated with complete and clean extraction of oil being a factor of consideration for a company interested in pursuing a reservoir. Tailings are also left behind, increasing cleanup costs. Despite these tradeoffs, unconventional oil
2150-456: Is created in surrounding rock by the presence of high heat and pressure in the Earth's crust . Reservoirs are broadly classified as conventional and unconventional reservoirs. In conventional reservoirs, the naturally occurring hydrocarbons, such as crude oil ( petroleum ) or natural gas , are trapped by overlying rock formations with lower permeability , while in unconventional reservoirs
2236-431: Is more accurate to divide the oil industry into three sectors: upstream ( crude oil production from wells and separation of water from oil ), midstream (pipeline and tanker transport of crude oil) and downstream ( refining of crude oil to products, marketing of refined products, and transportation to oil stations). More than 65,000 oil fields are scattered around the globe, on land and offshore. The largest are
2322-649: Is shared between Iran and Qatar . The second largest natural gas field is the Urengoy gas field , and the third largest is the Yamburg gas field , both in Russia . Like oil, natural gas is often found underwater in offshore gas fields such as the North Sea , Corrib Gas Field off Ireland , and near Sable Island . The technology to extract and transport offshore natural gas is different from land-based fields. It uses
2408-413: Is that reservoirs are not uniform. They have variable porosities and permeabilities and may be compartmentalized, with fractures and faults breaking them up and complicating fluid flow. For this reason, computer modeling of economically viable reservoirs is often carried out. Geologists, geophysicists, and reservoir engineers work together to build a model that allows simulation of the flow of fluids in
2494-940: Is usually necessary to drill into the Earth's crust, although surface oil seeps exist in some parts of the world, such as the La Brea Tar Pits in California and numerous seeps in Trinidad . Factors that affect the quantity of recoverable hydrocarbons in a reservoir include the fluid distribution in the reservoir, initial volumes of fluids in place, reservoir pressure, fluid and rock properties, reservoir geometry, well type, well count, well placement, development concept, and operating philosophy. Modern production includes thermal , gas injection , and chemical methods of extraction to enhance oil recovery. A virgin reservoir may be under sufficient pressure to push hydrocarbons to
2580-634: The Ghawar Field in Saudi Arabia and the Burgan Field in Kuwait , with more than 66 to 104 billion barrels (9.5×10 m ) estimated in each. In the modern age, the location of oil fields with proven oil reserves is a key underlying factor in many geopolitical conflicts. Natural gas originates by the same geological thermal cracking process that converts kerogen to petroleum. As
2666-560: The aquatic ecosystem , which is usually a sea but might also be a river, lake, coral reef, or algal mat , the formation of an oil or gas reservoir also requires a sedimentary basin that passes through four steps: Timing is also an important consideration; it is suggested that the Ohio River Valley could have had as much oil as the Middle East at one time, but that it escaped due to a lack of traps. The North Sea , on
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2752-407: The buoyancy forces driving the upward migration of hydrocarbons through a permeable rock cannot overcome the capillary forces of a sealing medium. The timing of trap formation relative to that of petroleum generation and migration is crucial to ensuring a reservoir can form. Petroleum geologists broadly classify traps into three categories that are based on their geological characteristics:
2838-520: The 1920s. In 1942, driven in part by the shortage of steel during World War II , the company introduced the Model D Packer, which enabled multiple completions in the same well. In 1943, the company earned the Army-Navy E Flag for its wartime manufacturing contributions. In early 1956, during one of the most successful periods in the company's history, Baker retired as President of Baker Oil Tools and
2924-580: The 1950s and 1960s, Hughes Tool Company remained a private enterprise, owned by Hughes. While Hughes was engaged in his Hollywood and aviation enterprises, managers in Houston, such as Fred W. Ayers and Maynard Ellsworth Montrose, kept the tool company growing through technical innovation and international expansion. In 1958, the Engineering and Research Laboratory was enlarged to accommodate six laboratory sections that housed specialized instruments, such as
3010-484: The Baker Hughes AutoTrak rotary closed loop system. Genesis ZX PDCs followed with new Zenith cutters. In April 1992, Baker Hughes acquired Teleco Oilfield Services, a provider of directional measurement-while-drilling technology, from Sonat for $ 200 million cash, preferred stock and royalty from future sales of Teleco's "triple combo" sensors. Teleco Oilfield Services was founded in 1972 and introduced
3096-620: The Blackbeard site in the Gulf of Mexico. ExxonMobil 's drill rig there had reached 30,000 feet by 2006, without finding gas, before it abandoned the site. Crude oil is found in all oil reservoirs formed in the Earth's crust from the remains of once-living things. Evidence indicates that millions of years of heat and pressure changed the remains of microscopic plants and animals into oil and natural gas. Roy Nurmi, an interpretation adviser for Schlumberger oil field services company, described
3182-606: The Celle engineering and manufacturing team introduced the Navi-Drill line of downhole drilling motors, which has led the drilling industry in performance and reliability for three decades. Other innovations developed in Celle include the industry's first steerable motor system, and the AutoTrak Rotary Closed Loop System, a pioneering directional drilling tool. In 1978, Christensen Diamond Products
3268-410: The actual capacity. Laboratory testing can determine the characteristics of the reservoir fluids, particularly the expansion factor of the oil, or how much the oil expands when brought from the high pressure and high temperature of the reservoir to a "stock tank" at the surface. With such information, it is possible to estimate how many "stock tank" barrels of oil are located in the reservoir. Such oil
3354-536: The bit occupied a 20-foot by 40-foot rented space. On August 10, 1909, the United States Patent and Trademark Office granted a patent to Hughes. After Walter Sharp died in 1912, Hughes purchased Sharp's half of the business. The company was renamed Hughes Tool Company in 1915, and Hughes, Jr. inherited it after his father's death in 1924. In 1933, the company introduced the Tricone drill bit. Through
3440-461: The blocks." This article about a specific oceanic location or ocean current is a stub . You can help Misplaced Pages by expanding it . This oceanography article is a stub . You can help Misplaced Pages by expanding it . Oil field A petroleum reservoir or oil and gas reservoir is a subsurface accumulation of hydrocarbons contained in porous or fractured rock formations. Such reservoirs form when kerogen (ancient plant matter)
3526-488: The company also sold Totco division of its Exlog subsidiary to NOV Inc. for $ 41 million in cash and stock. In 1929, H. John Eastman introduced "controlled directional drilling " in Huntington Beach, California, using whipstocks and magnetic survey instruments to deflect the drill pipe from shore-based rigs to reach oil deposits offshore. In 1934, Eastman Whipstock Inc. was founded by Eastman and Roman W. Hines,
Keathley Canyon - Misplaced Pages Continue
3612-425: The company has subsequently grown via acquisitions. The Hughes Tool Company was founded in 1908 by business partners Walter Benona Sharp and Howard R. Hughes, Sr. , father of Howard Hughes , Jr. That year, Hughes, Sr. and Sharp developed the first two-cone drill bit , designed to enable rotary drilling in harder, deeper formations than was possible with earlier fishtail bits. They conducted two secret tests on
3698-487: The company merged with GE Oil and Gas . As part of the transaction, the company sold a 53.3% percent stake in the hydraulic fracturing and cementing business to CSL Capital Management and Goldman Sachs ’ West Street Energy Partners for $ 325 million. General Electric announced plans to divest its stake by 2023; by year-end 2021, its remaining ownership was approximately 11.4%. In 2019, the company sold its Reciprocating Compression division to Arcline Investment Management,
3784-585: The company sold a 71% stake in BJ Services via an initial public offering . On April 28, 2010, Baker Hughes re-acquired BJ Services . In 2017, after the division suffered market share losses, the company sold a majority interest in BJ Services to private equity firms to obtain approval for the merger with GE Oil and Gas . In November 2014, the company agreed to a merger with Halliburton valued at $ 34.6 billion. If consummated, it would have been
3870-542: The cutting edge, reducing the energy required to remove the rock. In 1996, patented ChipMaster PDCs, known for their efficiency and durability, were built on the success of the Eggbeater product line. Hughes Christensen next introduced the Genesis HCM bits for steerable motors with patented EZSteer depth-of-cut control technology. This same technology was adapted to Genesis HCR bits for rotary steerable systems, such as
3956-460: The division acquired Cornerstone Pipeline Inspection Group. In 1997, the company acquired Drilex, a provider of drilling products and services, for $ 109 million in stock. In 1998, the company acquired Western Rock Bit Company, a Canadian bit distributor, for $ 30.8 million. Western Atlas , which specialized in finding oil by mapping geological formations with sound waves and using wires to manipulate tools and gauges in oil and natural-gas wells,
4042-545: The energy transition. The company divides its organization into the following segments: The company has acquired many legacy brands and businesses over the years, including Druck, Panametrics, Reuter-Stokes, Bently Nevada , and Nuovo Pignone in Italy. All of these entities now fall within the Baker Hughes portfolio. Baker Hughes traces its roots to the 1987 merger of Hughes Tool Company and Baker Oil Tool Company and
4128-549: The first Baker Hughes chairman of the board in 1987. During its 80-year history prior to its merger with Baker Hughes, Baker Oil Tools had only three chief executive officers. In 1970, Baker Oil Tools acquired Lynes, Inc., which produced liner hangers and other completion equipment. In 1978, Baker Oil Tools introduced the Bakerline casing liner hanger. In 1985, the FlexLock Liner Hanger was introduced, extending
4214-402: The gas bubbles drive the oil to the surface. The bubbles then reach critical saturation and flow together as a single gas phase. Beyond this point and below this pressure, the gas phase flows out more rapidly than the oil because of its lowered viscosity. More free gas is produced, and eventually the energy source is depleted. In some cases depending on the geology the gas may migrate to the top of
4300-407: The geology of the underlying rock allows, meaning that certain fields can be far away from civilization, including at sea. Creating an operation at an oil field can be a logistically complex undertaking, as it involves the equipment associated with extraction and transportation, as well as infrastructure such as roads and housing for workers. This infrastructure has to be designed with the lifespan of
4386-568: The largest fracking proppants vessel for deepwater work in the Gulf of Mexico . It was named after founder Howard R. Hughes Sr. On June 11, 2012, during the annual period of negotiations between trade unions, including SAFE, the Norwegian union for energy workers, and their employer counterparts in Norway, 114 Baker Hughes employees were called to a strike action , which would have affected over
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#17327828936984472-511: The largest merger in the history of the petroleum industry . The merger was approved by both companies' stockholders; however, on April 6, 2016, the United States Department of Justice sued to block the transaction due to concerns that the merger would affect competition and prices in the oilfield service industry. On May 1, 2016, the companies terminated the merger agreement due to the regulatory opposition. In July 2017,
4558-434: The liquid sections applying extra pressure. This is present in the reservoir if there is more gas than can be dissolved in the reservoir. The gas will often migrate to the crest of the structure. It is compressed on top of the oil reserve, as the oil is produced the cap helps to push the oil out. Over time the gas cap moves down and infiltrates the oil, and the well will produce more and more gas until it produces only gas. It
4644-438: The location of oil-water contact and with it the height of the oil bearing sands. Often coupled with seismic data, it is possible to estimate the volume of an oil-bearing reservoir. The next step is to use information from appraisal wells to estimate the porosity of the rock. The porosity of an oil field, or the percentage of the total volume that contains fluids rather than solid rock, is 20–35% or less. It can give information on
4730-438: The oil and form a secondary gas cap. Some energy may be supplied by water, gas in water, or compressed rock. These are usually minor contributions with respect to hydrocarbon expansion. By properly managing the production rates, greater benefits can be had from solution-gas drives. Secondary recovery involves the injection of gas or water to maintain reservoir pressure. The gas/oil ratio and the oil production rate are stable until
4816-691: The oil and gas industry for exploration and production, as well as other energy and industrial applications. It operates in over 120 countries, with facilities in Australia, Brazil, Singapore, Malaysia, India, Dubai, Saudi Arabia, Italy, Germany, Norway, the United Kingdom and the United States. Baker Hughes manufactures equipment which can also be used for industrial applications such as hydrogen production, geothermal energy resources and carbon capture utilization and storage, as part of
4902-436: The oil field in mind, as production can last many years. Several companies, such as Hill International , Bechtel , Esso , Weatherford International , Schlumberger , Baker Hughes and Halliburton , have organizations that specialize in the large-scale construction of the infrastructure to support oil field exploitation. The term "oilfield" can be used as a shorthand to refer to the entire petroleum industry . However, it
4988-724: The other hand, endured millions of years of sea level changes that successfully resulted in the formation of more than 150 oil fields. Although the process is generally the same, various environmental factors lead to the creation of a wide variety of reservoirs. Reservoirs exist anywhere from the land surface to 30,000 ft (9,000 m) below the surface and are a variety of shapes, sizes, and ages. In recent years, igneous reservoirs have become an important new field of oil exploration, especially in trachyte and basalt formations. These two types of reservoirs differ in oil content and physical properties like fracture connectivity, pore connectivity, and rock porosity . A trap forms when
5074-646: The performance range and functionality of liner hanger systems. In 1987, the Brown liner hanger technology was merged into Baker Oil Tools. In 1992, Baker Oil Tools introduced the ZXP Liner Top Packer, with expandable metal seals, which set the stage for development of expandable screens, casing systems and liner hangers. In 1994, Baker Oil Tools introduced multilateral completion systems, which enabled operators to install completion tools and perform selective intervention work in multiple horizontal sections from
5160-406: The placement of the well with respect to the gas cap. As with other drive mechanisms, water or gas injection can be used to maintain reservoir pressure. When a gas cap is coupled with water influx, the recovery mechanism can be highly efficient. Water (usually salty) may be present below the hydrocarbons. Water, as with all liquids, is compressible to a small degree. As the hydrocarbons are depleted,
5246-431: The preferential mechanism of leaking: the hydraulic seal and the membrane seal. A membrane seal will leak whenever the pressure differential across the seal exceeds the threshold displacement pressure, allowing fluids to migrate through the pore spaces in the seal. It will leak just enough to bring the pressure differential below that of the displacement pressure and will reseal. A hydraulic seal occurs in rocks that have
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#17327828936985332-429: The pressure. As the reservoir depletes, the pressure falls below the bubble point , and the gas comes out of solution to form a gas cap at the top. This gas cap pushes down on the liquid helping to maintain pressure. This occurs when the natural gas is in a cap below the oil. When the well is drilled the lowered pressure above means that the oil expands. As the pressure is reduced it reaches bubble point, and subsequently
5418-485: The process as follows: Plankton and algae, proteins and the life that's floating in the sea, as it dies, falls to the bottom, and these organisms are going to be the source of our oil and gas. When they're buried with the accumulating sediment and reach an adequate temperature, something above 50 to 70 °C they start to cook. This transformation, this change, changes them into the liquid hydrocarbons that move and migrate, will become our oil and gas reservoir. In addition to
5504-491: The reduction in pressure in the reservoir allows the water to expand slightly. Although this unit expansion is minute, if the aquifer is large enough this will translate into a large increase in volume, which will push up on the hydrocarbons, maintaining pressure. With a water-drive reservoir, the decline in reservoir pressure is very slight; in some cases, the reservoir pressure may remain unchanged. The gas/oil ratio also remains stable. The oil rate will remain fairly stable until
5590-492: The remainder of Hughes Tools to form Hughes Christensen. In 1993, Hughes Christensen introduced the AR-Series PDC bits, anti-whirl bits with increased penetration rates up to 100% in some applications and extended bit life as much as four-fold, compared to previous bit designs. By 1995, Hughes Christensen's Gold Series PDC line increased drilling efficiency by reducing the frictional forces that can accumulate in front of
5676-408: The reservoir pressure drops below the bubble point when critical gas saturation is reached. When the gas is exhausted, the gas/oil ratio and the oil rate drops, the reservoir pressure has been reduced, and the reservoir energy is exhausted. In reservoirs already having a gas cap (the virgin pressure is already below bubble point), the gas cap expands with the depletion of the reservoir, pushing down on
5762-409: The reservoir, leading to an improved estimate of the recoverable resources. Reserves are only the part of those recoverable resources that will be developed through identified and approved development projects. Because the evaluation of reserves has a direct impact on the company or the asset value, it usually follows a strict set of rules or guidelines. To obtain the contents of the oil reservoir, it
5848-410: The rock fabric by strong capillary forces, requiring specialised measures for evaluation and extraction. Unconventional reservoirs form in completely different ways to conventional reservoirs, the main difference being that they do not have "traps". This type of reservoir can be driven in a unique way as well, as buoyancy might not be the driving force for oil and gas accumulation in such reservoirs. This
5934-419: The rocks have high porosity and low permeability, which keeps the hydrocarbons trapped in place, therefore not requiring a cap rock . Reservoirs are found using hydrocarbon exploration methods. An oil field is an area of accumulated liquid petroleum underground in multiple (potentially linked) reservoirs, trapped as it rises to impermeable rock formations. In industrial terms, an oil field implies that there
6020-503: The same year the company drilled the world's first relief well to control a blowout in Conroe, Texas , that had been on fire for more than a year. In 1957, Frank Christensen 's Christensen Diamond Products opened a manufacturing plant in Celle , Germany. The facility built diamond core heads and drilling bits and soon began producing stabilizers, drilling jars and other equipment. In 1977,
6106-410: The source, the "drier" the gas (that is, the smaller the proportion of condensates in the gas). Because both oil and natural gas are lighter than water, they tend to rise from their sources until they either seep to the surface or are trapped by a non-permeable stratigraphic trap. They can be extracted from the trap by drilling. The largest natural gas field is South Pars/Asalouyeh gas field, which
6192-454: The structural trap, the stratigraphic trap, and the far less common hydrodynamic trap . The trapping mechanisms for many petroleum reservoirs have characteristics from several categories and can be known as a combination trap. Traps are described as structural traps (in deformed strata such as folds and faults) or stratigraphic traps (in areas where rock types change, such as unconformities, pinch-outs and reefs). Structural traps are formed as
6278-452: The surface. As the fluids are produced, the pressure will often decline, and production will falter. The reservoir may respond to the withdrawal of fluid in a way that tends to maintain the pressure. Artificial drive methods may be necessary. This mechanism (also known as depletion drive) depends on the associated gas of the oil. The virgin reservoir may be entirely semi-liquid but will be expected to have gaseous hydrocarbons in solution due to
6364-613: The transaction. In April 2007, the company pleaded guilty in U.S. federal court to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay $ 44.1 million in fines and penalties for making $ 4.1 million in " commission " payments between 2001 and 2003 that allegedly resulted in an oil-services contract in the Karachaganak Field in Kazakhstan . In 2001, the company introduced
6450-407: The water begins to be produced along with the oil, the recovery rate may become uneconomical owing to the higher lifting and water disposal costs. If the natural drives are insufficient, as they very often are, then the pressure can be artificially maintained by injecting water into the aquifer or gas into the gas cap. The force of gravity will cause the oil to move downward of the gas and upward of
6536-431: The water reaches the well. In time, the water cut will increase, and the well will be watered out. The water may be present in an aquifer (but rarely one replenished with surface water ). This water gradually replaces the volume of oil and gas that is produced out of the well, given that the production rate is equivalent to the aquifer activity. That is, the aquifer is being replenished from some natural water influx. If
6622-442: The water. If vertical permeability exists then recovery rates may be even better. These occur if the reservoir conditions allow the hydrocarbons to exist as a gas. Retrieval is a matter of gas expansion. Recovery from a closed reservoir (i.e., no water drive) is very good, especially if bottom hole pressure is reduced to a minimum (usually done with compressors at the wellhead). Any produced liquids are light-colored to colorless, with
6708-556: The world's first MWD tool in 1978. Teleco had approximately 1,300 employees, including 430 in Meriden, Connecticut . In 1993, Baker Hughes INTEQ was formed by combining five of the company's oilfield divisions. Petrolite was formed in 1930 from the merger of William Barnickel's Tret-O-Lite with Petroleum Rectifying Company of California (PETRECO). In 1997, Baker Hughes acquired Petrolite for $ 693 million in stock. At that time, Wm. S. Barnickel & Co. owned 47% of Petrolite. In 2003,
6794-467: Was "the company’s first deepwater exploration well following a U.S. moratorium" after the Deepwater Horizon explosion and oil spill in the Gulf in 2010 and "one of the largest discoveries in the Gulf ... in the last decade". "Exxon holds a 50% working interest in four ... blocks. Units owned by Petrobras and Eni hold a 25% interest in three of the blocks. Petrobras also owns 50% of one of
6880-422: Was acquired by Norton Co. and changed its name to Norton Christensen. In 1986, Eastman Whipstock merged with Norton Christensen to form Eastman Christensen. In 1990, Baker Hughes acquired Eastman Christensen from Norton Abrasives for $ 550 million. To receive approval from the United States Department of Justice , the company sold its Hughes Tool diamond bit business. Baker Hughes combined Eastman Christensen and
6966-495: Was divested from Litton Industries in 1994. In 1995, Western Atlas acquired 50% of PetroAlliance Services Company, Ltd., which offered seismic, well-logging, and integrated project services in the Post-Soviet states . In May 1997, Western Atlas acquired Sungroup Energy Services, a Canadian well logging , production testing, and completion services provider. During the fourth quarter of 1997, Western Atlas acquired Geosignal,
7052-481: Was founded by Cicero C. Brown in 1929 in Houston and patented the first liner hanger in 1937. Liner hangers enable drillers to lengthen their casing strings without having the liner pipe extend all the way to the surface. This saves capital cost and reduces weight borne by offshore platforms. Oil Base Inc. (OBI), founded by George Miller in 1942, was acquired by Hughes Tool Company in 1979, and renamed Hughes Drilling Fluids in 1982. In 1949, OBI introduced Black Magic SFT,
7138-527: Was founded in 1952 in Sacramento, California by Vern C. Jones, and had 800 employees. In November 1975, the company acquired Reed Tool Company of Houston in a $ 120 million stock transaction. In 1976, it became Baker International Corporation with almost all of its operations headquartered in Houston. In 1985, Baker International acquired the drilling fluids division of Newpark Resources and merged it with Milchem's mud division to form Milpark. As
7224-568: Was granted a U.S. patent for a casing shoe that enabled drillers to efficiently run casing and cement it in oil wells. The casing shoe revolutionized cable tool drilling by ensuring the uninterrupted flow of oil through the bottom of the casing in the well. In 1913, he founded Baker Casing Shoe Company. In the 1920s, it expanded into national and international markets. In 1928, Baker Casing Shoe Company changed its name to Baker Oil Tools, Inc. to reflect its product line of completion, cementing, and fishing equipment. Baker Oil Tools expanded to Houston in
7310-681: Was made in part to prevent an acquisition of Western Atlas by Halliburton . The acquisition added strong seismic-data operations as well as downhole wireline and testing services. In 1999, the only new seismic technology that was being introduced was the 4-dimensional seismic survey monitoring. In 2000, during a downturn in the petroleum industry , the company merged its Western Geophysical division with Schlumberger 's Geco (Geophysical Company of Norway) to form WesternGeco . In 2006, Baker Hughes sold its 30% share of WesternGeco to Schlumberger for $ 2.4 billion in cash. In 2001, Baker Hughes acquired OCRE (Scotland) Ltd. from Maritime Well Service,
7396-446: Was succeeded by his long-time associate Ted Sutter. Baker died only a few weeks later after a brief illness at the age of 85. Although he only had three years of formal education, Baker received more than 150 patents in his lifetime. In 1962, it acquired Pressure Services. In 1963, it acquired Kobe, one of the largest manufacturers of hydraulic systems for oil well pumping. In 1964, Sutter was succeeded by E.H. "Hubie" Clark, who became
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